OPEC+ Set for Further Oil Output Hike Amid Growing Competition

OPEC+ is set to further hike oil output in a virtual meeting on Sunday, as the group seeks greater market share. The 'Voluntary Eight' (V8) - comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman - has already boosted production by 2.7 million barrels per day since April.

Analysts predict a slight output hike of 137,000 barrels per day from December, mirroring last month's decision. This change in strategy is working to a certain degree, said Ole Hvalbye, commodities analyst at SEB bank, as US shale oil producers' supply is not increasing anymore.

The V8 group cites low oil inventories worldwide to justify the increase in production quotas. However, some analysts are cautious about the impact of this move on prices, given the recent sharp drop in crude oil inventories in the United States and the growth in supply.